AP Human Geography Unit `10

Development

The process of improving conditions of people through diffusion of knowledge and technology.

Developed County (MDC)

High developed country that has progressed further on the development continuum.

Developing country (LDC)

A county that has made progress toward development, though less than developed countries

Human Development Index (HDI)

Measures the level of development for a country through their standard of living, lifespan, and access to education. The highest possible score is a 1.0

Gross National Income (GNI)

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country

Purchasing Power Parity (PPP)

An adjustment made to the GNI to account for differences among countries in the cost of goods

Gross Domestic Product (GDP)

The value of goods and services produced within a country’s borders in a year

Primary Sector of Economy

Includes activities that directly extract materials from Earth through agriculture, mining, fishing, and forestry.

Secondary Sector of Economy

Includes manufacturers that process, transform, and assemble raw materials into useful products

Tertiary Sector of Economy

Involves the provision of goods and services to people in exchange for payment, such as retail, banking, law, education, and government.

Productivity

The value of a particular product compared to the amount of labor needed to make it.

Infant Mortality Rate (IMR)

Number of deaths of infants under one year old in a given year per 1,000 live births

Inequality-Adjusted Human Development Index (IHDI)

HDI score that takes into account the inequalities in a country. The lower the score, the HIGHER the inequality. Based on decent standard of living, education, lifespan, and gender.

Wallerstein’s World System Theory

Explains the spacial relationships between countries and explains uneven economic development.

Gender Inequality Index (GII)

Measures the gender gap in the level of achievement in three dimensions: reproductive health, female empowerment, female labor force participation

Gender Development Index (GDI)

Measures the gender gap in the level of achievement for the three dimensions of HDI

Core

Areas that control economic capital. High income, greater social and political stability. (North America, Europe, Japan, and Australia)

Periphery

Areas that are economically developing. 100% dependent on core countries. Lack economic power, low income with uneven distribution, social and political instability. (Almost all of Africa, western South America, parts of Asia on Europe)

Semi-periphery

Transition stage from a status as a core country or peripheral country. Not 100% dependent on a core country, but not strong enough to have others depend on them. Medium income, somewhat developed. (Brazil, Russia, India, China, South Africa)

Self-Sufficiency Path

When countries encourage domestication of goods, discourage foreign ownership of businesses and resources, and protect their businesses from international competition

International Trade Path

Countries open themselves to foreign investment and international markets and specialize in a unique economic asset

Traditional Society Stage

The country has not yet started the process of development. High percentage of national wealth goes to “nonproductive” activities such as military and religion.

Preconditions for takeoff stage

An elite group initiates innovative economic activities. The country starts to invest in new technology and infrastructure, increasing productivity.

Takeoff Stage

Some industries have rapid growth and become productive, while other sectors still remain in the traditional stage

Drive to Maturity

Modern technology spreads to other industries, which then experience rapid growth

Age of Mass Consumption

Economy shifts from heavy industry to consumer goods

The Four Dragons

South Korea, Singapore, Taiwan, and Hong Kong were some of the first places to adopt an internation trade development path. Concentrated on manufacturing

Foreign Direct Investment (FDI)

Investment made by a foreign company in the economy of another country

Microfinance

The provision of small loans and other financial services to individuals and small businesses in LDC’s that are unable to obtain loans from commercial banks

Stimulus Strategy

Governments spend more money than they collect in taxes to prompt people to work harder

Austerity Strategy

Cutting tax collecting and government spending so people can revive the economy by putting money into their businesses

Structural Adjustment Program

Contains economic “reforms” and “adjustments” such as economic goals, strategies for achieving those goals, and external financing requirements

Commodity Dependence

When more than 60% of countries’ economic health is tied to one or two resources

Special Economic Zone (SEZ)

Areas in a country selected by the government with different regulations (tax breaks, loans, use of loans, subsidies)

Fair Trade

International trade that provides greater equity to workers and small businesses in LDC’s